Question

In: Accounting

The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year...

The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 2:

Cash $

18,900
Beginning inventory 19,135 (215 units @ $89)
Common stock 15,900
Retained earnings

22,135

The following five transactions occurred in Year 2:

  1. First purchase (cash) 120 units @ $91
  2. Second purchase (cash) 195 units @ $99
  3. Sales (all cash) 365 units @ $191
  4. Paid $15,200 cash for salaries expense
  5. Paid cash for income tax at the rate of 25 percent of income before taxes

Required

  1. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow.
  2. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.)

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 2: Cash $ 19,700 Beginning inventory 17,200 (200 units @ $86) Common stock 14,200 Retained earnings 22,700 The following five transactions occurred in Year 2: First purchase (cash) 115 units @ $88 Second purchase (cash) 195 units @ $96 Sales (all cash) 345 units @ $196 Paid $14,200 cash for salaries expense Paid cash for income tax at the rate of 25 percent of...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 3: Cash $ 18,500 Beginning inventory 17,800 (200 @ $89) Common stock 14,400 Retained earnings 21,900 The following five transactions occurred in Year 3: First purchase (cash): 120 units @ $91 Second purchase (cash): 200 units @ $99 Sales (all cash): 350 units @ $195 Paid $13,700 cash for salaries expense Paid cash for income tax at the rate of 25 percent of income...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 3: Cash $ 17,600 Beginning inventory 18,480 (210 @ $88) Common stock 14,400 Retained earnings 21,680 The following five transactions occurred in Year 3: First purchase (cash): 120 units @ $90 Second purchase (cash): 200 units @ $98 Sales (all cash): 360 units @ $198 Paid $16,650 cash for salaries expense Paid cash for income tax at the rate of 25 percent of income...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 3: Cash $ 17,700 Beginning inventory 20,680 (220 @ $94) Common stock 14,700 Retained earnings 23,680 The following five transactions occurred in Year 3: First purchase (cash): 125 units @ $96 Second purchase (cash): 195 units @ $104 Sales (all cash): 375 units @ $200 Paid $16,100 cash for salaries expense Paid cash for income tax at the rate of 25 percent of income...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 3: Cash $ 19,000 Beginning inventory 18,245 (205 @ $89) Common stock 14,600 Retained earnings 22,645 The following five transactions occurred in Year 3: First purchase (cash): 120 units @ $91 Second purchase (cash): 200 units @ $99 Sales (all cash): 355 units @ $186 Paid $15,750 cash for salaries expense Paid cash for income tax at the rate of 25 percent of income...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 3: Cash $ 19,900 Beginning inventory 18,000 (200 @ $90) Common stock 15,000 Retained earnings 22,900 The following five transactions occurred in Year 3: First purchase (cash): 120 units @ $92 Second purchase (cash): 200 units @ $100 Sales (all cash): 350 units @ $190 Paid $13,950 cash for salaries expense Paid cash for income tax at the rate of 25 percent of income...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 3: Cash $ 19,800 Beginning inventory 19,270 (205 @ $94) Common stock 14,400 Retained earnings 24,670 The following five transactions occurred in Year 3: First purchase (cash): 115 units @ $96 Second purchase (cash): 200 units @ $104 Sales (all cash): 350 units @ $195 Paid $14,500 cash for salaries expense Paid cash for income tax at the rate of 25 percent of income...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 3: Cash $ 17,500 Beginning inventory 19,475 (205 @ $95) Common stock 15,800 Retained earnings 21,175 The following five transactions occurred in Year 3: First purchase (cash): 120 units @ $97 Second purchase (cash): 200 units @ $105 Sales (all cash): 355 units @ $185 Paid $14,600 cash for salaries expense Paid cash for income tax at the rate of 25 percent of income...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 2: Cash $ 19,700 Beginning inventory 17,200 (200 units @ $86) Common stock 14,200 Retained earnings 22,700 The following five transactions occurred in Year 2: First purchase (cash) 115 units @ $88 Second purchase (cash) 195 units @ $96 Sales (all cash) 345 units @ $196 Paid $14,200 cash for salaries expense Paid cash for income tax at the rate of 25 percent of...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year...
The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 3: Cash $ 18,300 Beginning inventory 17,400 (200 @ $87) Common stock 15,600 Retained earnings 20,100 The following five transactions occurred in Year 3: First purchase (cash): 120 units @ $89 Second purchase (cash): 195 units @ $97 Sales (all cash): 350 units @ $193 Paid $13,800 cash for salaries expense Paid cash for income tax at the rate of 25 percent of income...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT